Highlights of Budget 2022
India’s economic growth in the current year is estimated to be 9.2 percent, the highest among all large economies. The overall, sharp rebound and recovery of the economy from the adverse effects of the pandemic is reflective of our country’s strong resilience. This was stated by Union Minister for Finance and Corporate Affairs Smt Nirmala Sitharaman while presenting the Union Budget in Parliament on 1st February 2022.
So, let’s consider the highlights of the budget 2022 for easy understanding and clarity:
1. CAPITAL GAIN TAXATION
Surcharge on long-term capital gains arising on transfer of any type of assets is capped at 15%. Presently, long-term capital gain on listed equity shares, units, etc. are liable to a maximum surcharge of 15 percent, while other long-term capital gains are subjected to a high surcharge rate of 37 percent. This is expected to benefit taxpayers in high-income tax slabs as well as investors in equity shares of start-ups.
This step will give a boost to the start-up community and along with my proposal on extending tax benefits to manufacturing companies and start-ups reaffirms our commitment to Atma Nirbhar Bharat, says finance minister.
- ONE CLASS ONE CHANNEL
The pandemic has adversely affected the education of the students, especially the students belonging to rural areas and students studying in government schools. Keeping this in mind, the government has introduced the concept of universal quality education. Due to the pandemic, the students have suffered the loss of almost 2 years of formal education. Hence, to impart supplementary teaching and to build a resilient mechanism for education delivery, the government has introduced ‘one class-one TV channel’ program of PM e- VIDYA which will be expanded from 12 to 200 TV channels which will enable all the states to provide the supplementary education in regional languages for the classes 1st to 12th.In order to promote crucial critical thinking skills and to give space to creativity in vocational courses, 750 virtual labs in science and mathematics and 75 e-skilling labs for stimulating learning environments are proposed to be set up in 2022-23.
In order to provide universal digital education, a digital university is proposed to be set up to provide access to students across the country for world-class quality education with a personalized learning experience at their doorstep. The university would be established on a networked hub-spoke model, with the hub building’s cutting-edge ICT expertise. For the network of hub-spokes, the best public universities and institutions will collaborate and join hands to impart digital education to the students.
- ONE STATION ONE PRODUCT
To promote and enhance the development of business and employment of particular area, our Finance Minister brings down the very crucial initiative through our longest extensive railway networks. By this initiative the idea behind was to boost the local chain of supply by using the mode of railway, to showcase their local product and make more connectivity to more stations. ‘One station one product’ now acquires further significance and relevance in the context of the pioneering “AatmaNirbhar Bharat Abhiyan” campaign launched by Prime Minister Narendra Modi with the aim to strengthen the domestic industries and make India self-reliant.
- POST OFFICE MATURING TO BANKS
Finance Minister Nirmala Sitharaman has announced that in FY 2022, 100% of the post offices will come under the core banking system. Hence, one can transfer the funds from the post office accounts to the other bank accounts in a hassle-free manner. This endeavor of the government will be very helpful for the farmers and senior citizens in rural areas which will enable interoperability and financial inclusion.
Hence, bringing the post office under the ambit of the core banking services will enable financial inclusion and access to the accounts through the following facilities:
- Net banking
- Mobile banking
- Automated teller machines (ATM’s)
- Online transfer of funds between post office accounts and bank accounts.
.It has also been proposed to set up 75 Digital Banking Units in 75 districts of the country by the scheduled commercial banks in furtherance of the agenda of digital banking. It has been noticed that digital banking, digital payments, and fintech innovations have grown at a rapid pace in the country. Also, in order to encourage further adoption of digital payments, it has been announced in the budget speech that the financial support for the digital payment ecosystem announced in the previous budget will be continued in 2022-2023.
Hence, the Government’s decision to integrate 1.5 lakh post offices with a core banking system will be a big push in promoting the digital economy.
- Startups for Agro Support
- National Bank for Agriculture and Rural Development (NABARD) will set up a blended fund to financially support the Agri tech startups for enhancing the agro produce value chain in rural areas.
- NABARD will support the FPOs (Farmer Producer Organizations) and related agencies as they support the startups.
- Digitalization of land records.
- The use of Kisan drones will be promoted for crop assessment and Spraying pesticides and insecticides
- Chemical-free natural farming will be promoted in the country with a special focus on 5 Km corridor along the river Ganga in the first phase.
- To reduce dependence on the import of oilseed, a rationalized and comprehensive scheme to increase domestic production of oilseeds will be implemented.
- States will be encouraged to revise syllabi of agricultural universities to meet the needs of natural, zero-budget, and organic farming, modern-day agriculture, value addition, and management.
- SPECIAL ECONIMIC ZONE
Customs administration to be fully IT driven in SEZs and will function on the Customs National Portal with a focus on higher facilitation and with only risk-based checks. This will be implemented by 30th September 2022; which in turn will support in the ease of doing business in India.